Final answer:
The contactless magnetic stripe and chip reader device by Square uses Near-Field Communications (NFC) wireless communication and transmission technology to receive encrypted data. This type of transmission or technology allows data to be transferred over a very short range.
Step-by-step explanation:
The contactless magnetic stripe and chip reader device by Square uses Near-Field Communications (NFC) wireless communication and transmission technology to receive encrypted data. This type of transmission or technology allows data to be transferred over a very short range by inducing a magnetic field at microwave frequencies between two coils.
For example, cell phones that have NFC capability and the right software can supply information for purchases using the cell phone instead of a physical credit card. The very short range of the data transfer in NFC is a desired security feature.
Near Field Communication (NFC) is a set of short-range wireless technologies, typically requiring a distance of 4 cm or less to initiate a connection. NFC lets you share small payloads of data between an NFC tag and an Android-powered device, or between two Android-powered devices.